Businesses in the United States are subject to different laws depending upon the transactions in which they engage. Failure to follow transactional law may cause important business deals to fall through, or worse, expose you and your business to legal liability. Understanding the transactional laws involved in your business activities will help ensure that the related transactions are completed in a lawful and enforceable manner.

Contract Law

Nearly every business, no matter how big or small, will enter into contracts. A contract is simply an agreement between parties involving an exchange, such as money for services. Many contracts can be verbal, but certain contracts must be in writing and are subject to a state's "statute of frauds." Real estate purchases are an example. Smart businesses put all significant agreements in writing. Some contracts may even be inferred by law. These are called implied contracts. Most contracts are subject to state law.

Uniform Commerical Code: Sales

The Uniform Commercial Code is a set of commercial laws that have been adopted by all states, with some modifications made by each state's legislature. Article 2 of the Uniform Commercial Code addresses the sales of goods in a commercial setting. It covers the formation of a sales contract, performance of the contract, breaches of contracts, and remedies available for buyers or sellers who have been damaged by a breach of contract. Any business that is routinely involved in the commercial sale of goods should have a firm understanding of Article 2.

Uniform Commerical Code: Secured Transactions

The Uniform Commercial Code also applies to business credit transaction. Article 9 of the UCC addresses secured transactions. A secured transaction is a transaction involving the purchase of goods that are secured by collateral offered to the lender by the borrower. For example, a business may offer the inventory it is seeking to acquire through financing as collateral for the loan. Businesses will execute a security agreement granting the security interest, and lenders will file a financing statement with a state agency.

Real Estate Law

Many businesses will be involved in the purchase of real estate at one time or another. Some companies are focused on real estate, such as real estate investing companies, construction companies and development companies. Real estate law touches a broad range of legal subjects including property law, tax law, contract law and banking law. Real estate transactions are also governed by a broad range of local, state and federal regulations ranging from zoning and building ordinances to federal fair housing laws.

About the Author

Shawn M. Grimsley holds a bachelor's degree in political science, master's degree in public administration and a Juris Doctor. He practiced law for 10 years, focusing on general business law, securities law, real estate and civil litigation. Grimsley now serves as a teacher and writer.